GBP/USD: jittery on a dovish Fed

GBP/USD rallied on the back of the Fed staying put.

GBP/USD had been in recovery from Brexit fuelled lows of 1.4089, meeting 1.4215 highs before supply down to pre-announcements lows of 1.4146 in the vicinity of the 100 sma on the 15mi chart at 1.4148.

On the announcement that was unanimous holding at 0.25%, it was the dot plot that offered a far more dovish outlook from FOMC members with interest rates to stay lower for longer with only one more move before the end of the year that has been expected on the dot plot. The pound has subsequently moved higher to 1.4187 highs, but remains in a narrow range, oscillating back towards the 100 sma on the 15min chart.  Interestingly, the Fed didn't mention Brexit, or perhaps they forgot to mention it? Watching for Yellen's comments on it in the presser Q&A's. 

GBP/USD levels

Analysts at Commerzbank explained that any rallies should struggle circa 1.4255/1.4350 and following the recent erosion of the 4-month uptrend should then come under pressure. "Initial support lies 1.4083/05 area where the January and April lows were made and these guard the 1.3837 February low."

"Please note we have a 13 count on the 240 minute chart and TD support circa 1.4045. Nearby resistance lies at 1.4317 (previous uptrend) and 1.4515 (March high) ahead of 1.4665 (February high)."